Younger people 'neglecting income protection'

This article was correct at the time of publication. It is now over 6 months
old so the content may be out of date.

Many consumers aged 25 and under are failing to protect their debts against the possibility that they become unable to work, it has been revealed.

Research by insurance specialist LifeSearch has found that just three per cent of all policies written last year were for this age group, despite a large proportion owing money through secured and unsecured loans.

Policy adviser Matt Morris noted that "more effort" is needed to ensure that young adults are made aware of the need for insurance.

"Many younger people have debts, mortgages and families that need financial protection in the event of the main income provider being unable to work," he noted.

According to LifeSearch, such policies can work out to be a lot cheaper when bought earlier in a person's lifetime.

Consumer campaign group Which? recently advised those with unsecured loans to consider income protection as an alternative to payment protection insurance, as it can be more effective and cover a wider range of debts.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Stay in the know

Please send me emails with the latest Moneyfacts news, best buy products and specially selected third party offers